NAFCO appeals for additional GH¢100 million to purchase surplus food produce

The National Food Buffer Stock Company (NAFCO) has appealed to the government for an additional GH¢100 million to enable it to purchase surplus food produce, particularly paddy rice, to curb post-harvest losses and stabilise market prices.

According to Mr Osmond Amuah, Deputy Chief Executive Officer of NAFCO, the request follows the full utilisation of an earlier GH¢100 million allocation released under the National Food Reserve Programme.

The funds, he said, were used prudently to procure 60,000 bags of rice, 120,000 bags of maize, and 10,000 bags of gari.

Addressing journalists at a press conference in Accra on Thursday, Mr Amuah said although the intervention brought relief to some distressed farmers, the volumes on the market remained high, putting many farmers at risk of losing their livelihoods.

“The first GH¢100 million was applied to support farmers in distress, but the volumes are still high. We need additional funding to mop up the remaining grains to prevent farmers from losing their livelihoods,” he stated.

He told journalists that the Minister for Food and Agriculture had agreed to present NAFCO’s request for an additional GH¢100 million to Cabinet for urgent consideration.

The proposed funds, he explained, would be used primarily to purchase paddy rice from farmers in the major production zones, especially in the northern regions, where a glut has been reported.

Mr Amuah revealed that NAFCO’s Producer Price Determination Committee, in consultation with key stakeholders, had set a floor price of GH¢5 per kilogram for paddy rice to ensure fair compensation for farmers.

“This means that no aggregator working with NAFCO or on behalf of government will be permitted to buy below GH¢5 per kilogram. It’s a protective measure to guarantee farmers a decent return,” he said.

He explained that the move was part of government’s efforts to address long-standing challenges in the agricultural value chain, including limited storage capacity, poor market access, and inadequate financing for smallholder farmers.

Mr Amuah noted that farmers across major growing areas, including the Fumbisi and Tono irrigation schemes in the Upper East Region, and other northern belts, had raised concerns over unsold produce and declining prices.

He cited instances where a 220-kilogram bag of paddy rice, which sold at GH¢900 last year, was now being offered for about GH¢700, despite rising input costs.

The Deputy CEO said the additional funding would allow NAFCO to expand its mop-up operations to cover more farmers and production belts, including the coastal, middle, and northern zones, to stabilise prices and ensure the sustainability of farming communities.

While commending government for its commitment to revitalising the food reserve system, he emphasised that sustaining the initiative would require continuous investment in storage infrastructure, financing, and institutional capacity.

“Our goal is to build a robust national food reserve that can hold at least 10 per cent of our annual food consumption as a buffer in times of emergency,” he noted.

Mr Amuah reaffirmed NAFCO’s resolve to work with all stakeholders to achieve the long-term goal of a sustainable national food reserve system that guarantees value for money and economic stability.

BY CECILIA YADA LAGBA

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